Like most everything else in the electric vehicle sector, NIO has an aggressive valuation, but as we’ve seen. that has not been a major issue for the sector. The stock has been moving well as a sympathy play on Tesla and has recently received some positive coverage.
On September 3, Credit Suisse raised its target to $25 as NIO had indicated that its capacity will increase to 5000 units in September. August 2020 deliveries were up 104% year over year to almost 4000 vehicles
On September 8, Deutsche Bank initiated coverage of NIO with the equivalent of a “buy” ranking and set a $24 target.
Technically, the stock has pulled back to support around the high $17-$17.50 area and held up well after a dip in sympathy with the wild volatility in Tesla.
We are looking for a move out of the wedge pattern to signal a resumption of momentum. Alternatively, we would consider adding to our position on a pullback to support around $17. As always, we would not look to chase the stock at the open on Monday but would look for entry either on strong momentum or a lower volume pullback.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, employees, and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in NIO. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.